Donald Trump has stated that he “couldn’t care less” if carmakers raise prices following the imposition of his 25% tariffs on foreign-made vehicles, which are set to take effect soon.
Some analysts have warned that the new charges on businesses importing vehicles could result in the temporary shutdown of significant car production in the US, price hikes, and a strain on relations with international allies.
Speaking to NBC News on Saturday, the US president explained that he hoped foreign carmakers would increase prices, as it would lead to more Americans purchasing domestically-produced cars. “We have plenty,” Trump said, referring to American-made vehicles.
On Wednesday, Trump announced the new import tax of 25% on cars and car parts entering the US from overseas. The tariffs are set to take effect on April 2. Charges for businesses importing vehicles will begin on April 3, and taxes on parts will start later in May or beyond.
When asked what his message was to car manufacturers, Trump said, “The message is congratulations, if you make your car in the United States, you’re going to make a lot of money.”
He added, “If you don’t, you’re going to have to probably come to the United States because if you make your car in the United States, there is no tariff.”
The 25% import tax on carmakers was briefly put on hold in March following pressure from major North American automakers like Ford, General Motors, and Stellantis. However, Trump told NBC that he did not plan to delay the tariffs any further, indicating he would only consider negotiations “if people are willing to give us something of great value. Because countries have things of great value, otherwise, there’s no room for negotiation.”
Trump’s comments come amid reports that UK sources have said the UK would not hesitate to retaliate against US tariffs if needed. The UK is currently in last-minute negotiations with the White House to secure an exemption, arguing that it shares a relatively equal trading relationship with the US compared to other countries. UK Prime Minister Sir Keir Starmer has made it clear that he does not want to escalate a trade war.
Other major economies have also vowed retaliation in response to Trump’s tariffs. Germany has declared it will “not give in,” while French President Emmanuel Macron has labeled the move as “a waste of time” and “incoherent.” Canada has called it “a direct attack,” and China has accused the US of violating international trade rules.